On Dec. 7, CREB^® shared the announcement that all 10 Alberta real estate boards and associations have approved new provincial rules for the reporting of pending sales.

Since our migration to the Pillar 9™ MLS^® System, many members expressed a need for the ability to see the true status of listings on the MLS^® System and CREB^® advocated for change on behalf of our members.

This change provides the continual advertising that sellers want, while giving buyer’s agents reliable information to limit buyer frustration. Finding this balance has been part of broader, provincewide discussions since our transition to Pillar 9™.

Changes coming into effect Jan. 3, 2022

As of Jan. 3, all new listings that are conditionally sold must be reported on the MLS^® System as Pending. Listing agents have the responsibility to update their listing within two business days to reflect the true status of the property.

All Pending listings will continue to appear as Active on third-party IDX and VOW websites (giving sellers continual exposure until conditions are removed), but buyers working with REALTORS^® will know the true status of a listing due to the requirements of reporting conditional sales.

Changes to showings on pending listings

Showings on pending listings are now required by default. This is a new development, as Pending status previously meant no showings.

Keeping conditionally sold properties active on third-party websites allows the public to explore all their options, as properties that are conditional remain eligible for backup offers. To support backup offers, showings need to be accommodated, hence the showing default.

If your seller decides not to accommodate showings after you’ve assisted them in securing an offer with conditions, the seller can provide you with written instructions to decline showings. Click here for the Showing Instructions Template from AREA that can be used to obtain these instructions. 

Preparing for upcoming changes

For any new listings taken on or after Jan. 3, it’s important that you have a conversation with your sellers, advising them that their listing (once conditionally sold) will be marked as Pending on the MLS^® System.

When a seller accepts an offer subject to conditions, it is also important to provide both options about showings, explaining the benefits and drawbacks of each, so they can make an informed decision.

Should a seller choose to decline showings, the listing agent needs:

• Written seller instructions advising their REALTOR^® to decline showings; AND
• A statement in the private remarks indicating no showings due to conditional sale.

Please note that these changes are only in effect for listings taken on or after Jan. 3, 2022. Existing conditionally sold properties where the listing contract was in place before Jan. 3, can still be reported as Active or Pending as the update to the rules is not retroactive.

Supporting our members

We understand this change requires our members to adjust their business practices and CREB^® is committed to supporting our members as they navigate this change.

From Jan. 3 to March 31, CREB^® Member Practice is taking the following educational approach:

• Reporting of conditional sales
  Should CREB^® Member Practice verify a listing was not reported as Pending that needed to be, we will only be issuing educational advisories to inform the listing agent of the requirement and the necessary remedy. If the listing agent doesn’t change the listing’s status, the listing will be withdrawn.
• Showings being declined
  If CREB^® Member Practice is informed that a listing cannot be shown while in Pending status, and the listing is missing either the required Private Remarks statement or written seller instructions, the listing agent will be sent an educational advisory and asked to make the necessary changes to avoid their listing being withdrawn.

Enforcement

Beginning on April 1, members who are found to be in violation of either the required reporting of conditional sales or requirements to decline showings on pending listings will be subject to enforcement on an escalating scale:

• $250 fine for the second offence (for members who had already received an educational advisory[s] during the “soft enforcement” period);
• $500 fine for the third offence; and
• Fourth and subsequent offences will result in a disciplinary hearing.

The complete rule changes, including redline changes to the MLS^® System Listing and Practice Rules for Alberta REALTORS^®, are available on AREA’s website.

CREB^® Member Practice has prepared a list of FAQs to help you prepare for this change in reporting conditionally sold listings. Click here to view the FAQs on CREB^®Link.

For more information or questions, contact CREB^® Member Practice at crebmp@creb.ca or 403-781-1336.